3005-3015 J ST OM

J STREET OPPORTUNITY

SACRAMENTO, CA

Kelly Rivett Lucas Lugo Ali Nadimi
Senior Managing Director Associate Director Managing Director
CA RE License #01249433 CA RE License #01916673 CA RE License #01723313
916.569.2385 [email protected] 916.569.2322 [email protected] 916.569.2355 [email protected]

17-1655 • 04/18

TERMS OF OFFERING

On behalf of the Owner of the property referenced herein (“Property”) present this Confidential Offering Memorandum (“Memorandum”) to assist the recipient(s) (“You” or “Your”) in
evaluating the Property and it is intended for Your use only. This Memorandum contains brief, selected information pertaining to the Property and should not be considered all-inclusive
or permanent. The information in this Memorandum has been obtained from sources believed to be reliable, but has not been verified and is not guaranteed. You should independently
verify each item of information and have the same reviewed by Your tax advisor and/or legal counsel. Assumptions, projections, estimates and/or opinions are provided as examples only
and all information is subject to changes, errors, omissions and/or withdrawal without notice. Broker and Owner assume no responsibility for and make no warranty as to the accuracy
or completeness of any information in this Memorandum. Broker and Owner expressly disclaim any implied or expressed warranties of merchantability, fitness for a particular purpose
or non-infringement of intellectual property relating to this Memorandum. In no event shall Broker or Owner be liable for any damages resulting from the reliance on or use of any
information in this Memorandum, including but not limited to direct, special, indirect, consequential or incidental damages. By accepting receipt of this Memorandum, You agree to the
following: (a) This Memorandum is of a highly confidential nature, will be held in the strictest confidence and shall be returned to Broker upon request; (b) You shall not contact any
property manager, employee or tenant of the Property regarding the Property or this Memorandum, without prior approval of Broker or Owner; and (c) You understand
and agree that Broker represents Owner and not You. Neither Broker nor Owner shall have any obligation to pay any commission, finder’s fee, or any other compensation to any broker
or other person. By accepting receipt of this Memorandum, you agree to defend, indemnify and hold harmless Broker and Owner (including all of their agents, employees, subsidiaries,
affiliated entities, successors and assigns) from and against any and all claims, disputes, litigation, demands, damages, liabilities, losses, judgments, expenses, fines, contributions,
charges, injuries and/or costs and expenses, including reasonable attorneys’ fees, arising or resulting from acts by You.

Legal documents and reports summarized in this brochure are not intended to be comprehensive statements of the terms and contents of such documents and reports. Although
Broker and Owner believe the information to be accurate, no warranty or representation is made as to its accuracy or completeness. Interested parties should conduct independent
investigations and reach conclusions without reliance on materials contained herein.

The Property shall be sold AS-IS, WHERE-IS, WITH ALL FAULTS, and Seller makes no warranties, representations, certifications nor “to the best of my knowledge” type statements to
the status of the Property, the improvements thereon, potential use, economic feasibility, environmental matters, the availability of development rights or permits or any other matters.
Seller will not incur any obligations that extend beyond the Closing.

OFFERING PROCESS To facilitate analysis of offers, prospective buyers are
encouraged to provide information relative to: funding
Offers should be delivered to the office of the Exclusive Listing Broker, Newmark Knight Frank sources, experience in owning and operating similar
via email, or by contacting: properties, familiarity with the market and any other
information which is likely to favorably reflect on the
Kelly Rivett Lucas Lugo Ali Nadimi offerer’s ability to close this proposed transaction in a
Senior Managing Director Associate Director Managing Director timely manner.
CA RE License #01249433 CA RE License #01916673 CA RE License #01723313
916.569.2385 [email protected] 916.569.2322 [email protected] 916.569.2355 [email protected]

EXECUTIVE SUMMARY
OFFERING SUMMARY
PROPERTY IDENTIFICATION
INVESTMENT HIGHLIGHTS
COMPS - FOR SALE
COMPS - SOLD
AMENITIES MAP
REGIONAL OVERVIEW

EXECUTIVE SUMMARY

As the exclusive advisor, Newmark Knight Frank is pleased to present for sale a unique investment opportunity on J Street in East
Sacramento. 3005-3015 J Street is comprised of 10 tenants in 3 buildings on 2 contiguous parcels totaling 12,889 SF or .29/acre.
This purchase allows an investor/developer the option to either continue current operations with some property improvements to increase
income from existing tenants or redevelop into a beautiful and modern mixed-used property with apartments/condos above ground floor
retail. Home sales and apartment/condo rents have both achieved record high price per square foot numbers, with continued expectation
of absorption and sustainable growth. Sacramento occupancy rates are hovering around 97% and have experienced double digit rent
increases for the past 3 years.

East Sacramento is a submarket, just east of midtown/downtown and is considered one of the most prominent and affluent areas in all
of Sacramento. Our subject property offers 80 feet of high profile J Street frontage, and is situated between 30th Street and Alhambra
Blvd. This location provides excellent visibility and allows easy access to all freeways, restaurants, coffee shops, shopping, parks, schools,
churches, and hospitals

In a growth market with little to no infill opportunity, and housing demand outpacing supply, this investment provides the perfect opportunity.

J STREET OPPORTUNITY

OFFERING SUMMARY

Offering Price: Unpriced
Address: (Determined By Market)

3005-3015 J Street
Sacramento, CA 95816

Property Type: Retail/Office/Apartments
Building Net SF:
Three Structures = 7,541 SF
Parcel Size: • 3005 - 3009 J Street (2,757 SF)
• 3011 J Street (1,100 SF)
Parcel Information: • 3013-3015 J Street (3,684 SF)
Frontage:
Two Parcels:
12,889 SF or .296/Acre
3005-3011 J Street
(6,362 SF or .146/Acre)
3013-3015 J Street
(6,527 SF or .15/Acre)

007-0052-015
007-0052-016

80 Feet on J Street

Zoning: C-2-SPD
(Special Planning District)

PROPERTY IDENTIFICATION

3005 - 3011 J STREET

3005 -3011 J Street consists of two (2) separate buildings and four tenants. Completed in early 1950’s, these improvements are
comprised of a two-story office/retail building and a shop building. Both buildings sit on concrete foundations and were constructed
with a mix of wood, concrete and stucco materials. This property also offers 5-7 open parking spaces in the rear of the property,
accessed by the alley between 30th Street and Alhambra Blvd. All units are individually metered for utilities.

Address SF Rent $/SF Term

3005 - 3007 J Street ±1,628 $900.00 $.55 MTM
3009 J Street (2nd Story) ±1,129 $675.00 $.60 MTM
3011 J Street (Rear Shop) ±1,100 $675.00 $.61 MTM
±3,857 $2,550.00/Mo.

PROPERTY IDENTIFICATION

3013 - 3015 J STREET

3013 - 3015 J Street is improved with a two story building that consists of two (2) ground floor retail spaces and three (3) 2nd story
apartments. The two-story building was likely constructed in the early 1900’s and the one-story building area (J Street Retail) is
estimated to have been completed in the 1950’s. This structure sits on a concrete foundation and built with a mix of wood, concrete
and stucco. In addition to the building improvements, this property includes approximately fifteen (15) open parking spaces, accessed
by the alley between 30th Street and Alhambra Blvd. All units have individually metered utilities.

Address SF Rent Unit Type $/SF Term
Retail
3013 J Street (Front) ±1,038 Vacant Retail N/A N/A
3013 J Street (Rear) ±364 $400.00 2/1 $1.09 1 YR
3013 J Street #1 ±755 $700.00 1/1 $.93 MTM
3013 J Street #2 ±527 $650.00 Studio $1.23 MTM
3013 J Street #3 ±304 $495.00 Retail $1.63 MTM
3015 J Street ±696 $600.00 $.86 MTM
±3,684 $2,845.00/Mo.

INVESTMENT HIGHLIGHTS

Prime Mixed-Use Redevelopment Opportunity 80’ x 160’ Lot (Combined Parcels)
Location, Location, Location
J Street Exposure (80 Feet) C-2 - SPD Zoning
Tremendous Income Upside
2 Parcels Totaling .29/Acre Multifamily Occupancy Rate 97% (East Sac., Midtown,
Housing Demand Out pacing Supply Downtown)
Existing Income in Place
High Walkability Score Office Occupancy Rate 92% (East Sac., Midtown, Downtown)
Easy I-80 Access
Located in Desirable East Sacramento 2 Blocks to McKinely Park

Across from Safeway, US Bank and within walking distance
to numerous restaurants, coffee shops, schools, parks and
public transportation

55% of East Sacramento residences exceed $100,000
annually

SOLD COMPARABLES Acre Square Feet Sold Price Price/SF

Property .29 12,889 N/A N/A

Subject Property $170.90
3005-3015 J Street $171.19
Sacramento, CA $106.09
$91.80
1. 800-816 K Street .66 28,800 $4,922,000
Sacramento, CA .37
.43 16,301 $2,799,000
2. 1601 L Street .99
Sacramento, CA 18,851 $2,000,000

3. 1422 & 1430 Q Street 25,600 $2,350,000
Sacramento, CA

4. 1601 H Street
Sacramento, CA

SOLD COMPARABLES - MAP

SALE COMPARABLES

Property Acre Square Feet Sold Price Price/SF Status

Subject Property .29 12,889 N/A N/A Available
3005-3015 J Street Available
Sacramento, CA .15 6,464 $800,000 $123.76 In Escrow
Available
1. 3022 J Street Available
Sacramento, CA

2. 10th & Q Street .80 35,032 N/A N/A
Sacramento, CA
.73 31,998 $3,200,000 $100.00
3. 2000 16th Street
Sacramento, CA

4. 320-350 Alhambra Blvd. 2.18 94,961 N/A N/A
Sacramento, CA

SALE COMPARABLES - MAP

AMENITIES MAP

3005-3015 J Street McKinley Park
Sutter Middle School

REGIONAL OVERVIEW

SACRAMENTO HIGHLIGHTS BUSINESS CLIMATE AND WORKFORCE

The Sacramento region is comprised of 100 square miles and is located 75 With a unique and increasingly healthy mix of economic opportunities for
miles northeast of San Francisco and 90 miles southwest of Lake Tahoe. companies and job seekers alike, the Sacramento Region has experienced
With roughly 2.2 million residents, Sacramento serves as the capitol city of strong population and steady job growth over the last few decades and is
California, the sixth largest economy in the world. Sacramento is undergoing expected to outpace the national average by more than double over the
a renaissance where rich history, a diversified business climate, agriculture next ten years. This growth is credit to the diversification and strength
affluence, and quality of life has drawn national attention. of the region’s economic base—with a shift from primarily government
employment to include private sector employment that now represents
Government Employed 25% dynamic and expanding industries including high technology, life sciences,
agriculture, hospitality, education, healthcare, and clean energy technology.
Current Unemployment Rate 3.8% In fact, the renewable energy and clean energy technology industries have
been investing in the Sacramento Region at levels never seen before and
Sacramento has experienced a population growth of 21% since year 2000 an increasing number of national and international firms are choosing the
Sacramento Region as their base of operations for the United States.
Population Growth Between 6%
2010-2015 In addition to the Sacramento Region’s strengths for traditional businesses,
including lower costs, a positive business climate, and high quality of life, the
region is seeing a new wave of technology companies moving to the area
to take advantage of an entirely new set of competitive advantages. These
advantages include strong educational and research institutions, location
of the state capital, proximity to the San Francisco Bay Area, an emerging
venture capital network, premier sites and facilities, and a qualified technical
workforce.

REGIONAL OVERVIEW SACRAMENTO ATTRACTIONS

TRANSPORTATION AND ACCESS • Sacramento State Capitol
The Sacramento region is a transportation hub and offers an array access to • Sutter’s Fort
many destinations. • Sacramento Convention Center
• Major Highways - Interstate 5, Highway 99, Highway 80 • American River Parkway
• Freight/Passenger Trains - Amtrak and Regional Transit Light Rail • Golden 1 Entertainment Center
• Bus Lines - Regional Transit and Greyhound • California Railroad Museum
• Sacramento International Airport • Crocker Art Museum
• Deep-Water Shipping Port • Old City Cemetery
• Bicycling (Ranked 5th in the United States for Bike Friendly Cities) • Old Sacramento
• Wells Fargo Pavilion
COLLEGES AND UNIVERSITIES • Sacramento Zoo
• California State University Sacramento (CSUS) - 30,284 Students • Sacramento Community Theater
• University of California – Davis (UCD) - 32,000 Students • Cal Expo
• Sacramento City College - 24,000 Students • Many other galleries, breweries, museums,
• American River College - 32,000 Students
• Sierra College - 20,000 Students and theaters not mentioned

PROFESSIONAL SPORTS TEAMS
• Sacramento Kings (NBA)
• Sacramento River Cats
(Minor League Baseball - SF Giants Affiliation)
• Sacramento Republic
(Professional Soccer Team- United Soccer League)
• Sacramento Express (Professional Rugby)

REGIONAL OVERVIEW

SACRAMENTO REGION EMPLOYMENT BY INDUSTRY Government- State and Federal

3% 1.5% 1.5% 1% Transportation, Trade and Utilities
4%
5% 25% Health and Education Services

5%

Professional and Business Services

Hospitality and Leisure

Financial Activities

10% Construction LARGEST SACRAMENTO REGION EMPLOYERS
13% Manufacturing PRIVATE SECTOR
Other Services

16% Information Services Company Employees
15% Agriculture UC Davis Health Systems 9,900
Mining and Logging Sutter Health 7,300
Kaiser Permanente 6,900
Intel Corporation 6,000
AT&T 4,700
Raley’s Inc. 3,200
Hewlett Packard 3,200
Apple Inc. 2,500
Wells Fargo 2,500
VSP Global 2,300
Health Net of California 2,300

Kelly Rivett
Senior Managing Director
CA RE License #01249433
916.569.2385 [email protected]
Lucas Lugo
Associate Director
CA RE License #01916673
916.569.2322 [email protected]
Ali Nadimi
Managing Director
CA RE License #01723313
916.569.2355 [email protected]

980 NINTH STREET, SUITE 2500, SACRAMENTO, C A 9 5 8 1 4

The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to
such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.